Deals on wheels

Dave Girling covers the ups and down of the automobile market

Dave Girling feels that the time is right for car shoppers to take advantage of low interest rates and reasonable vehicle prices — Photo by Glynis Fediuk

Purchasing a car is one of the major investments a person makes, second only to buying a home.

Car shopping in 2010, after job loss and financial woes brought on by the recession, is apt to be quite different than it was prior to 2009.

Buying habits have been transformed; reliability, warranties, insurance costs and fuel efficiency are at the forefront of car-buyers’ minds.

Dave Girling, the dealer principal at Cranbrook Dodge, said that caution overrides impulse when finances are tight.

“We’ve seen that people are taking a lot more time to make a decision,” said Girling. “They’re looking for a lot more value then they did before, when it was ‘that’s a pretty color’ or ‘that’s a nice looking car.’ That’s irrelevant these days.”

Selling cars during and directly after a recession takes a deeper understanding of customer service—something the staff at Cranbrook Dodge was able to focus on during the slower parts of 2009.

One method was to have employees address issues from a consumer’s perspective by meeting without management present.

“Our philosophy has been that if we sell you one, we’ll sell you 20 over your lifetime,” Girling said, “but if we sell you one and then fail in the service category, we’re likely not going to sell you any more.”

Buyers’ benefits

Customers will find that the impact of the recession has affected not only the service they’ll receive, but the price of the automobiles themselves.

In a move implemented by the manufacturers to increase competition, the cost of vehicles compared to their retail prices has been reduced.

This resulted in the profitability of the dealerships going down.

Interest rates are low, and Girling said that banks are more apt to provide loans this year, though they are still acting judiciously.

Canadian exporters and manufacturers benefit when the Canadian dollar drops against the U.S. dollar, as it has since the beginning of 2010.

Prices for used vehicles have dropped significantly, hitting some dealerships harder than others.

A salesperson’s need to move stock results in more opportunity for bargaining. It is, in essence, a buyer’s market.

“I don’t want to pay interest on these vehicles sitting out on the lot so we have to have more turnover and we’re taking thinner deals than we used to,” said Girling. “It’s a challenge for us to continue to move vehicles in a timely fashion, and that translates into really great deals for customers.”

Looking for a vehicle?

Dave Girling offered the following tips and reminders for those browsing the car market:

• The prices of trade-ins have fallen along with the prices of new cars, so people who most benefit in the current market are those without trade-ins.
• There is no difference in the vehicle’s price between paying cash or financing.
• The biggest mistake Girling sees is when people spread their payments over too long a period, reducing the vehicle’s equity.
• Make your intentions clear to the dealer—if you’re serious, let them know. • Choose a dealer who makes you feel comfortable—they’ll likely be the ones servicing your car.